Nexus between trade, climate change mitigation technology and natural resources on sustainable economic development

This study estimates the role of natural resources, trade, and climate change mitigation transport technology on sustainable economic development in One Belt, One-Road (OBOR) countries from 1973 to 2022. Therefore, this study articulates how the simultaneous effect of natural resources and climate change mitigation transport technology, as well as trade, affects sustainable economic development. To do so, we employ a cross-sectional autoregressive distributed lag for the OBOR panel dataset. Therefore, the Westerlund cointegration test shows that all the variables have lasting and significant relationships. The empirical scores revealed that natural resources have a remarkable impact on sustainable economic development. Natural resource rent increases adjusted net savings by 45% over time. Likewise, the simultaneous impact of natural resources and climate change mitigation transport technology is estimated at 1.3% in the long run and 1.7% in the short run. Notably, the natural resource rent and adjusted net savings have an inverted correlations by 1.5%. Subsequently, trade-oriented factors substantially impact about 194.15% of the adjusted net savings. Thus, this study recommends policy implications. Policymakers should set a target to increase adjusted net savings by 58.76% on average per year through the development of natural resource contrivances and provides directions for future research based on empirical findings.

Climate change · Climate change mitigation · Distributed lag · Natural resource · Panel data · Resource depletion · Sustainable development · Economic Growth and Development · Energy, Environment, Economic Growth · Natural Resources and Economic Development